FRIDAY MORNING'S TOP STORIES

Pre-open moves

Stock futures moved higher on General Electric's deal to sell most of its reinsurance division to Swiss Re for $8.5 billion, Cisco Systems $6.9 billion acquisition of Scientific-Atlanta and Hewlett-Packard's earnings outlook.

Global markets

The Nikkei 225 surged over 200 points to five-year highs, on a weak yen and on optimism over the Japanese economy. European stock markets also advanced, with automakers, airlines and miners among the leaders.

Broker action

J.P. Morgan Chase & Co.
JPM, +0.42%
was downgraded to equal weight from overweight by Morgan Stanley, due primarily to valuation, as the stock has approached its $41 price target. The potential upside to the target would put the stock's expected return in line with its peers.

SBC Communications
SBC, +1.58%
was upgraded to buy from neutral at UBS on valuation and cash flow growth expectations.

General Electric
GE, -1.70%
said it'll sell most of its Insurance Solutions reinsurance division to Swiss Re for $8.5 billion, after losing $700 million from that side of the business over the last five years.

Apparel company Liz Claiborne Inc.
LIZ
said that it offered to buy J. Jill Group Inc.'s
JILL, -0.12%
outstanding shares for about $366 million, or $18 a share in cash, representing a 40% premium to Thursday's closing price.

Shares of Hewlett-Packard Co.
HPQ, -1.03%
rose early Friday after the Dow component reported a fiscal fourth-quarter profit before items that topped Wall Street's expectations due to strong sales of its PCs, servers and storage gear. The company also issued a profit forecast for the current quarter that exceeded analysts' estimates.

Alltel
AT, +0.00%
said it has agreed to acquire Midwest Wireless, a private firm based in Mankato, Minn., that serves about 400,000 wireless customers in Minnesota, Wisconsin, and Iowa, for about $1.075 billion. The companies expect the deal to close the deal in the first half of 2006.

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